kerry killinger and other top wamu executives are in talks with the f.d.i.c. to settle a nearly one billion lawsuit filed against them. killinger has until to the end this month to respond to the f.d.i.c.'s complaint against him. regulators allege wa-mu executives took extreme risks with the bank's mortgage portfolio, which led to the largest bank failure in u.s. history. meantime, another former bank executive is headed to prison for eight years. catherine kissick used to head a mortgage division at the now- defunct colonial bank. she learned her punishment today. prosecutors say kissick's role in a $3 billion fraud scheme led to colonial's demise, as well as taylor bean and whitaker-- one of the nation's largest private mortgage companies. taylor bean's former chairman and owner lee farkas is due to be sentenced later this month. >> tom: here's what we're watching for next week. our friday market monitor guest is alan lancz editor of the "lancz letter." the federal reserve will be in the spotlight as it begins a two-day meeting on tuesday. chairman ben berna